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BREAKING NEWS

BREAKING NEWS

Renault and Fiat shares skid after $35 billion merger deal collapses

Renault and Fiat shares skid after $35 billion merger deal collapses
FILE PHOTO: The logos of Renault and Fiat carmakers are seen in Nice, France, June 3, 2019. REUTERS/Eric Gaillard -
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Eric Gaillard(Reuters)
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PARIS (Reuters) – Shares in carmakers Renault and Fiat Chrysler (FCA) both fell sharply on Thursday after Fiat Chrysler abandoned its $35 billion (£27.6 billion) merger offer.

Renault shares slumped 7% while Fiat’s shares fell around 3% in early trading.

“With FCA pulling its merger offer, one has to wonder how much the French state is set on limiting Renault’s strategic and valuation opportunities despite having only a 15% stake,” analysts at brokerage Jefferies wrote in a note.

“We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term.”

(Reporting by Sudip Kar-Gupta; editing by Jason Neely)

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